In News:

SEBI has introduced a new asset class called Specialised Investment Fund (SIF), designed to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS). This new asset class is targeted at informed investors who are willing to take on higher risks.

SIFs offer a blend of the flexibility seen in PMS and the regulatory framework governing MFs, making them suitable for investors seeking more customized and riskier investment strategies.

Key Features of SIF:

• Minimum Investment: The minimum investment threshold for SIFs is Rs. 10 lakh. However, accredited investors (who meet specific eligibility criteria) can invest with lower amounts.
• Expense Structure: SIFs will follow the same expense structure as mutual funds. For equity schemes up to Rs 500 crore in size, the maximum allowable fee is 2.25% of assets under management (AUM), with the cap decreasing as the fund size grows. This ensures transparency and keeps management fees in line with existing mutual fund norms.
• Investment Strategies: SIFs can offer a mix of open-ended, close-ended, and interval investment strategies. Specific details on permissible strategies will be released by SEBI in the future.
• Investment Restrictions:
  • For debt instruments, a single issuer's exposure is capped at 20% of the total AUM. However, this can be raised to 25% with approval from the Asset Management Company (AMC)’s trustees and board of directors. Government securities are exempt from this limit.
  • For equities, the exposure is capped at 10% of the total AUM, in line with the norms for mutual funds.
  • Ownership in Companies: The maximum permissible ownership in any company is raised to 15%, including the MF exposure.
• REITs and InvITs: SIFs can invest a maximum of 20% of their AUM in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). However, the exposure to a single issuer in these areas is limited to 10%.
• Branding and Marketing: SEBI mandates AMCs to distinguish SIFs clearly from MFs through distinct branding, advertising, and website presence. This helps in creating a clear differentiation between the two products for investors.
• Risk Management and Compliance: AMCs managing SIFs are required to have robust risk management systems, internal control systems, and expertise to handle the investments effectively. Trustees are responsible for ensuring that the AMC complies with all risk management, investor protection, and disclosure norms.

Regulatory Context:

• The regulations on SIFs are similar to those governing mutual funds, including taxation and other compliance requirements.
• SEBI also introduced the Mutual Fund Lite regulations to encourage the growth of passively managed funds, such as exchange-traded funds (ETFs) and index funds. These regulations are designed to reduce compliance burdens and lower the barriers to entry for new players in the mutual fund industry.

Significance of SIFs:

• Targeted Audience: SIFs cater to investors who are knowledgeable and willing to take on riskier investments, thereby filling a gap between traditional MFs (which are more conservative) and PMS (which offer highly customized solutions).
• Higher Flexibility: While SIFs maintain some regulations of MFs, they offer more flexibility in investment choices, allowing AMCs to explore more dynamic strategies.
• Investor Protection: By maintaining the same expense structure as mutual funds and ensuring compliance with regulatory frameworks, SEBI aims to protect investor interests while allowing for higher returns that come with riskier investments.

In News:

Recently, the Parliamentary Standing Committee (PSC) on Rural Development and Panchayati Raj highlighted several issues within the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The committee recommended reforms to address these challenges, especially concerning wage rates, workdays, payment systems, and infrastructure.

Key Challenges in MGNREGS Implementation:

• Wages Not Aligned with Inflation:
  • MGNREGA wage rates have failed to keep pace with inflation, diminishing the purchasing power of rural workers. This discourages workers from completing the full 100 workdays.
  • The wage guarantee of 100 days per household often falls short, especially during times of natural calamities or post-pandemic recovery.
• Revision of Permissible Works:
  • The list of allowable work under MGNREGA is outdated and doesn't cover all rural needs, such as flood protection or land erosion management. Delayed revisions limit its effectiveness in addressing region-specific challenges.
• Delayed Payment of Wages:
  • Issues like Aadhaar-based payment system (ABPS) glitches, inactive Aadhaar details, or frozen bank accounts often lead to delayed wage payments.
  • The delay in wages undermines the scheme's goal of providing livelihood support.
• Unemployment Allowance:
  • Those who apply for work but are not provided employment within 15 days are entitled to a daily unemployment allowance. However, this allowance is rarely paid, and when it is, the amounts are insufficient.
• Weak Social Audits:
  • Social audits are a vital mechanism to ensure transparency and accountability. However, in the 2020-21 fiscal year, only 29,611 Gram Panchayats out of a total were audited, pointing to the weak social audit system.
• Lack of Ombudsman:
  • Despite the provision for 715 ombudsmen, only 263 have been appointed. This reduces the oversight and accountability of the scheme.

Recommendations for MGNREGS Reform by the PSC:

• Revision of Wage Rates:
  • Link MGNREGA wages to an inflation index, ensuring wages reflect the rising cost of living in rural areas.
  • The base year (2009-2010) should be updated to align with current inflation trends.
• Increase Days of Work:
  • The PSC recommended increasing the guaranteed workdays from 100 to 150 days. This will provide better livelihood security, especially in times of economic distress.
• Improvement in Payment Mechanisms:
  • The committee recommended maintaining alternative payment systems alongside ABPS to prevent wage delays.
  • A streamlined process should be put in place to ensure timely wage disbursement, reducing bureaucratic hurdles.
• National Mobile Monitoring System (NMMS):
  • The committee stressed the importance of training programs to help beneficiaries effectively use the NMMS.
  • It also suggested retaining alternative attendance methods to avoid exclusion due to technological barriers. NMMS helps enhance transparency and accountability by tracking attendance and work progress.
• Sufficient Fund Allocation:
  • The committee emphasized the need for adequate financial allocations for MGNREGS to make it more effective in providing livelihood security to rural households.

Additional Context and Statistics:

• In 2024-25, the average wage increase under MGNREGA was just Rs 28/day.
• The MGNREGA wage increase for 2023-24 ranged from 2%-10%.
• The Consumer Price Index for Agricultural Labour (CPI-AL) is used to determine wage rates, although Dr. Nagesh Singh Committee (2017) recommended using the CPI Rural instead.

About the Parliamentary Standing Committee on Rural Development & Panchayati Raj (PSC):

• Established: August 5, 2004.
• Jurisdiction: The committee oversees the Ministry of Rural Development and the Ministry of Panchayati Raj.
• Composition: 31 members – 21 from Lok Sabha and 10 from Rajya Sabha.
• Functions:
  • Reviews Demands for Grants and reports.
  • Examines Bills referred by the Speaker or Chairman.
  • Reviews the annual reports of relevant ministries.
  • Considers national policy documents.

About MGNREGA:

• Launched: 2005 by the Ministry of Rural Development.
• Objective: Provides 100 days of unskilled manual work at minimum wages for rural households annually.
• Key Features:
  • Legal Guarantee: Work must be provided within 15 days of request.
  • Unemployment Allowance: If work isn't provided within 15 days, beneficiaries are entitled to a daily allowance.
  • Women-Focused: At least one-third of beneficiaries are women.
  • Social Audits: Mandated by the Gram Sabha for all projects under the scheme.

In News:

In Gujarat, Masali village in Banaskantha district has become country’s first solar border village.

Key Highlights:

Location:
Masali village is located in Banaskantha district, Gujarat, approximately 40 kilometers from the Pakistan border. The village, with a population of around 800 people, has recently achieved a significant milestone by becoming India’s first fully solar-powered border village.

Solarization Initiative:

Under the PM Suryaghar Yojana, the village has installed solar rooftops on 119 houses. These solar installations collectively generate over 225 kilowatts of electricity, which is more than sufficient to meet the village’s energy needs. This initiative marks a step forward in solarizing border areas of India, promoting sustainability and reducing dependency on conventional energy sources.

Significance of the Initiative:

• India's First Solar-Powered Border Village: Masali village is the first of its kind in India, making it a model for other border regions to adopt renewable energy solutions.
• Promotes Renewable Energy: The transition to solar power encourages sustainability, reduces dependence on traditional fossil fuels, and supports India's renewable energy goals.
• Part of the Border Development Project: Masali is part of a broader government plan that aims to solarize 11 villages in Vav taluka and 6 villages in Suigam taluka, strengthening energy access in these strategically vital areas.
• Energy Security: By harnessing solar energy, the village enhances its energy reliability and self-sufficiency, especially in remote areas with limited access to the national grid.

PM Suryaghar Yojana: Launched in 2024, the PM Suryaghar Yojana aims to provide free electricity to eligible Indian households by subsidizing the installation of rooftop solar panels. Key features of the scheme include:

• A subsidy covering up to 40% of the installation cost of solar panels.
• Eligible families receive 300 free electricity units per month, saving up to Rs. 18,000 annually.
• The scheme is expected to save the government approximately Rs. 75,000 crore annually on electricity costs.
• It encourages the use of renewable energy, lowers carbon emissions, and reduces the electricity expenses for the government.

Eligibility for the Scheme:

• Indian citizens who own a house with a suitable roof for installing solar panels.
• Households must have a valid electricity connection and should not have received any prior subsidy for solar panels.

Broader Implications:

The successful solarization of Masali village is not just an energy achievement but also a significant step toward promoting renewable energy usage, enhancing energy security, and fostering sustainable development in India’s border regions. It is expected that other regions in Gujarat and across the country will follow this example, improving both local living conditions and national energy resilience.

In News:

The Ministry of Home Affairs (MHA) of the Government of India has recently reinstated the Protected Area Regime (PAR) for the states of Manipur, Mizoram, and Nagaland, which are strategically located along the international border with Myanmar. This move comes amid growing security concerns, particularly the influx of migrants from Myanmar, which has been cited as a significant factor in the ongoing conflicts in the region.

What is Protected Area Permit (PAP)?

A Protected Area Permit (PAP) is a special permission required for foreign nationals to visit certain areas of India deemed sensitive due to their proximity to international borders or other security-related concerns. The regulations governing the PAP are laid down under the Foreigners (Protected Areas) Order, 1958, which restricts the entry of foreigners to designated regions within India.

Purpose of PAP:

The PAP regime serves multiple critical objectives:

• National Security: It ensures the monitoring and regulation of foreign nationals in sensitive border areas.
• Preservation of Local Communities: The regime safeguards indigenous populations and their unique cultural heritage.
• Environmental Conservation: The permit helps minimize ecological disturbances in fragile regions, ensuring sustainable tourism and development.

Key Features of PAP Regime:

• Eligibility: All foreign nationals, excluding Bhutanese citizens, must obtain a PAP to enter these designated areas. The permit can be granted for specific regions, routes, and time periods.
• Validity: The PAP is typically valid for 10 days with the possibility of extension.
• Restricted Areas: Certain foreign nationals, particularly those from Afghanistan, China, and Pakistan, require prior approval from the MHA to enter these regions.
• Tourism and Other Permits: While foreign nationals can visit these regions for tourism purposes under the PAP, non-touristic visits require special permission from the MHA.
• Registration: Foreigners must register with the Foreigners Registration Officer (FRO) within 24 hours of arrival in the protected area.

Historical Context and Reimposition:

The PAP regime was lifted for Manipur, Mizoram, and Nagaland in 2011, as part of efforts to boost tourism in the region. However, due to rising security concerns related to illegal immigration and ethnic tensions, the MHA reimposed the PAP in 2025. The government’s move aligns with its broader national security strategy to better control foreign movements in sensitive border regions, particularly those with Myanmar, where the Free Movement Regime (FMR) had previously allowed easier cross-border travel.

Background on Security Concerns:

The influx of individuals from Myanmar, particularly members of the Chin community, which shares ethnic ties with the Kuki-Zomi communities in India, has been a source of tension. The Manipur government has repeatedly emphasized that uncontrolled migration has contributed to the unrest in the state. Additionally, the decision to end the FMR between India and Myanmar has further intensified the debate over border security and migration.

Impact on Tourism and Local Communities:

While the reimposition of the PAP is seen as a measure to strengthen security, it has raised concerns in states like Mizoram and Nagaland, which have been actively promoting tourism. For example, Nagaland’s Hornbill Festival recently attracted over 200,000 visitors, including foreign nationals. The reintroduced restrictions may dampen tourism in these states, which were previously exempt from the PAP to encourage foreign visits.

Key Legal Provisions Under the PAP Regime:

• Foreigners (Protected Areas) Order, 1958: This order mandates the requirement of a PAP for foreigners visiting areas close to international borders.
• Foreigners (Restricted Areas) Order, 1963: This order covers areas that require a Restricted Area Permit (RAP) for foreign nationals, such as the Andaman and Nicobar Islands.

States Affected by the PAP Regime:

The PAP regime affects regions close to India’s international borders, including the entire states of Arunachal Pradesh, Sikkim, Manipur, Mizoram, Nagaland, and parts of Himachal Pradesh, Jammu & Kashmir, Rajasthan, and Uttarakhand.

In News:

Dark comets are a newly identified class of celestial objects that challenge our traditional understanding of comets and asteroids. Unlike regular comets, these objects exhibit characteristics that blur the lines between comets and asteroids, leading astronomers to closely study their nature, origin, and significance.

Discovery and Background

The first hint of dark comets appeared in 2016, when asteroid 2003 RM exhibited strange orbital deviations that suggested it might be a comet in disguise. NASA further fueled this interest in 2017 when it discovered ‘Oumuamua, an interstellar object that entered our Solar System. Though initially classified as an asteroid, its erratic motion and lack of a visible tail led scientists to consider it a dark comet. Since then, several more objects with similar characteristics have been discovered, and astronomers now identify these objects as a new class—dark comets.

Characteristics of Dark Comets

• Appearance: Dark comets do not exhibit the brilliant, glowing tails typically associated with comets. Instead, they resemble asteroids, appearing as faint points of light in space. Unlike bright comets, they do not have a visible coma (a cloud of gas and dust) or a tail, making them much harder to detect.
• Size: Dark comets are typically small, ranging from a few meters to a few hundred meters in diameter. Due to their small size, there is less surface area for material to escape, preventing the formation of the iconic tails seen in traditional comets.
• Orbital Path: These objects follow elongated, elliptical orbits. While some of them travel close to the Sun, they can also venture to the outer reaches of the Solar System, far beyond Pluto, and even into the Oort Cloud—the distant region where long-period comets are believed to originate.
• Spin and Gas Dispersion: Dark comets often rotate rapidly, dispersing gas and dust in all directions. This rapid spin contributes to their invisibility, as the gas and dust are scattered evenly, making it more difficult for astronomers to detect their presence.
• Composition: The composition of dark comets may also play a role in their lack of visibility. Over time, the materials that form the bright tails of comets may be depleted, especially for older objects. As a result, dark comets may not release enough gas to produce a visible coma or tail.

Types of Dark Comets

There are two main categories of dark comets:

• Inner Dark Comets: These are smaller objects that reside closer to the Sun and typically travel in nearly circular orbits. They are often just a few meters in size, with less surface area for gas and dust to escape.
• Outer Dark Comets: These larger objects, measuring over 100 meters in diameter, travel in highly eccentric orbits, similar to Jupiter-family comets. These dark comets follow elliptical paths that bring them close to the Sun and then send them back toward the outer reaches of the Solar System.

Importance of Studying Dark Comets

Dark comets may hold critical clues about the early Solar System and the formation of Earth. Studying these objects can provide insights into the origins of water on Earth, as well as the ingredients necessary for life. Their unique composition and orbits also offer potential for understanding the processes that led to the formation of planets.

Recent Discoveries and Advancements

Astronomers recently discovered 10 new dark comets with the help of the Dark Energy Camera (DECam) on a large telescope in Chile. The DECam, designed to study distant galaxies and stars, has enabled researchers to detect these faint objects by analyzing images of the night sky. Further progress is expected with the upcoming Vera C. Rubin Observatory, which will feature the largest digital camera ever built. This new instrument will allow astronomers to capture more detailed images of the night sky and detect fainter objects, potentially doubling or even tripling the number of known dark comets in the next decade.

Key Facts:

• Dark comets lack the characteristic glowing tails of typical comets, instead resembling asteroids.
• They exhibit erratic motions and follow elliptical orbits, often extending beyond Pluto and into the Oort Cloud.
• They are typically small (a few meters to hundreds of meters wide) and spin rapidly.
• The first dark comet was identified in 2016, with more discoveries made in the years since.
• The Dark Energy Camera (DECam) in Chile has been instrumental in detecting these elusive objects, with a new Vera C. Rubin Observatory expected to further enhance detection in the future.
• Studies suggest that between 0.5% and 60% of Near-Earth Objects (NEOs) could be dark comets, many originating from the asteroid belt between Mars and Jupiter.